Enterprise Value

Enterprise Value (or EV) is usually referred to as ATT theoretical takeover price. In the event of an acquisition, an acquirer would have to take on ATT Inc debt, but would also pocket its cash. Enterprise Value is more accurate representation of ATT value then its market capitalization because it takes into account all of ATT Inc existing debt. Enterprise value is a measure of the value of a business as a whole, calculated as Market Capitalization plus Total Debt USD minus Cash and Equivalents USD.